Olga Zykova: The need for external financing will increase by about $12-15 billion, based on updated forecasts for 2025

Deputy Minister of Finance of Ukraine Olga Zykova joined the event organised by the Centre for Economic Strategy (CES) and the German Economy Team (GET) on the budget deficit, partner assistance and prospects for 2025’. 

The key issues discussed were the needs of the State Budget of Ukraine, mobilisation of the necessary funding and assistance from partners for the rest of this year and beyond. 

Thanks to the systematic work of the Government of Ukraine and the implementation of the necessary reforms and measures, in 2024, the country managed to attract about USD 24.5 billion in direct budget support from international partners. The funds received are the result of the effective implementation of indicators and reforms under donor cooperation programmes. 

By the end of this year, Ukraine expects to attract another USD 13.5 billion in external financing: 

• about EUR 4 billion from the European Union under the Ukraine Facility financial instrument;

• over USD 3.9 billion from the United States;

• about USD 2.2 billion from the IMF under the EFF Arrangement; 

• about USD 2 billion from the Government of Japan; 

• about USD 500 million from the United Kingdom.

At the same time, Olga Zykova spoke about financial challenges in 2025, including the required amount of external financing for the next year and ways to secure it. 

“According to the IMF's estimates under the Extended Fund Facility Arrangement, the need for external financing is projected at USD 22.7 billion in 2025. Based on the revised assumptions on which the forecast for next year is based, the need for external financing will increase by USD 12-15 billion. The hostilities and the risks of a prolonged war, as well as the systematic growth of defence and security sector expenditures, are the key factors that influence the growth of financial needs,” the Deputy Minister said. 

Regarding the use of profits from the immobilised sovereign russian assets  for the benefit of Ukraine, the Deputy Minister of Finance noted that the Government's position remains unchanged: 

“It is important to find mechanisms to provide Ukraine with additional financial resources for 2025 as soon as possible. In this context, the joint decision of the G7 to establish a financing mechanism supported by the profits generated by frozen russian assets for the benefit of Ukraine is critical for the full financing of all budgetary needs. 

We are convinced that this financing should be unconditional and should not lead to a weakening of the country's debt sustainability. At the same time, we see this decision as the first step towards the complete confiscation of all frozen assets of the russian federation,” Olga Zykova stressed.